What: Harrods’ managing director has called on the UK government to reintroduce tax-free shopping

Why it is important: UK retailers are losing out to competition in other countries as travel returns and tourists can no longer reclaim VAT on purchases in the UK.

Tax-free shopping was scrapped as the UK Treasury claimed it would save GBP 2 billion, however, retailers are feeling the negative impacts of the legislation, including Mulberry who closed its Bond Street store this year as a result.

Many retailers including Harrods and Selfridges have called for a review of the tax as they fear London is losing out to rival cities such as London and Milan and the decline in visitors is impacting footfall and sales.

Harrods boss tells government to ‘stop burying its head’ and bring back tax-free shopping